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I began with a citi college credit card the moment I graduated from highschool. Interest rates were crap, but I always used it as a debit card. 7 years later, though I have moved on to a different credit card, I still have paid every bill 100%. My credit score has always been over 700 taking this route and I have not paid a dime in credit card interest.

From what I understand, the credit score bureaus simply take a screen shot of your accounts on one particular day. Unless they take a screen shot of it the day after you paid your bill in full, chances are you will have a running balance.

I think the more important factors are just making sure you pay all your bills on time, and to not have a ton of credit if you're not using it all (i.e. just stick to one single card).

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Originally posted by EddieZilker If you're financially situated to afford it, they shouldn't be a problem. If you're barely making ends meet, you're better off without one. You should also be aware that there are credit card companies that don't want you as a customer if you cost them more money than they can take in from you. Make sure you look at your terms and read every piece of mail they send you.

sure there are stipulations and such. for example years ago, citi card had a spending minimum for their credit cards, because they couldn't afford to accept customers spending a couple of hundred dollars a month.

when i was in college, i had my credit card to pay for tuition and such, and paid them off on time without a problem. then again, it was a college credit card with a high credit limit. days may be different these days with the whole credit crisis. fortunately my job is stable enough to have credit cards and fill my necessities.

@banora yes please do some research on it. as for credit cards and airline miles, i'm sure you'll see there are different packages out there, with some offering strictly with 1 airline versus using miles with multiple airlines. be careful with the multiple airline miles packages, because they have a shitty miles per dollar rate.

Credit cards are really convenient especially for

-shopping online
-paying over the phone
-starting a bar tab
-purchases overseas

I would recommend a low credit limit so you don't endanger yourself of overspending, and only using it when you have the money to pay it off dollar for dollar.

I'm also wary of reward schemes, and the reason is this: the fact that I had one meant I had an incentive to use my card for everything. That was fine because it didn't cost me any extra, and it was quite literally accepted everywhere (in NZ). The problem was there was a delay between paying for something and it turning up on my bank statement, so I was always not completely sure how much money I had to spend. The fact that I knew the credit card would never decline led me to spend more than I would have, having known how much I had.

And that's the reason I stopped renewing it and got a visa debit card instead.

quote:

Originally posted by FuzzQi Credit cards are really convenient especially for -shopping online -paying over the phone -starting a bar tab -purchases overseas I would recommend a low credit limit so you don't endanger yourself of overspending, and only using it when you have the money to pay it off dollar for dollar. I'm also wary of reward schemes, and the reason is this: the fact that I had one meant I had an incentive to use my card for everything. That was fine because it didn't cost me any extra, and it was quite literally accepted everywhere (in NZ). The problem was there was a delay between paying for something and it turning up on my bank statement, so I was always not completely sure how much money I had to spend. The fact that I knew the credit card would never decline led me to spend more than I would have, having known how much I had. And that's the reason I stopped renewing it and got a visa debit card instead.

My Visa debit card actually sucks for that. Due to the lag between me buying something, and it turning up on my statement, I can actually spend more than I have on the account because the system hasn't caught up yet, which shouldn't actually be possible This is especially bad on weekends. I put it to the test one weekend last year, and was able to spend more than $400 over what I should have been able to It was all good, I had the money to pay it off, since I would have used another method of payment anyway, but still.

My credit card, on the other hand, updates my online statement within minutes, just like my regular bank account.

Really? My Visa debit is almost instant... The only time things dont process is on weekends sometimes or gas stations (I have no idea why...).

Same here, the visa debit card updates immediately. I guess it has something to do with the arrangement between the card company and the bank.

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Originally posted by Sushipunk My Visa debit card actually sucks for that. Due to the lag between me buying something, and it turning up on my statement, I can actually spend more than I have on the account because the system hasn't caught up yet, which shouldn't actually be possible This is especially bad on weekends. I put it to the test one weekend last year, and was able to spend more than $400 over what I should have been able to It was all good, I had the money to pay it off, since I would have used another method of payment anyway, but still. My credit card, on the other hand, updates my online statement within minutes, just like my regular bank account.

Yeah, once I realised that lag was causing me to spend complacently, I got rid of it

My bank sends me an SMS whenever it processes a purchase so, whenever I use my debit card, I know exactly how long it takes until I actually pay for whatever it is that I bought.

Puzzles the hell out of cashiers after 3 AM

I really enjoyed only using cash in Japan.

quote:

Originally posted by Joss Weatherby I really enjoyed only using cash in Japan.

I bag to differ

Really, I'd drop coins all over the place. I rarely use them in Brazil, because we're very tolerant regarding prices (If something costs 3.95 or 4.05, handing two 2 real bills is almost always enough to get what you want and not have any change back), whereas they were anal about every cent (a cashier even corrected me when I asked how much something cost and rounded it down when I repeated the price to myself out of habit). My obvious clumsiness with the currency was a great convo starter with the Chinese cashiers though

quote:

Originally posted by Lira I bag to differ Really, I'd drop coins all over the place. I rarely use them in Brazil, because we're very tolerant regarding prices (If something costs 3.95 or 4.05, handing two 2 real bills is almost always enough to get what you want and not have any change back), whereas they were anal about every cent (a cashier even corrected me when I asked how much something cost and rounded it down when I repeated the price to myself out of habit). My obvious clumsiness with the currency was a great convo starter with the Chinese cashiers though

The only drawback was having to use my card at JP or 7/11 locations instead of at like every other ATM. But yea, I liked cash there. You didn't feel like you were going to get mugged having 500$ on you.

How do you have any type of card when you make no money?

quote:

Originally posted by Lews No it won't. The way to build your credit score is to make sure your balance is always below 50% of the maximum limit and, if what you owe is below 50%, to always pay double the minimum payment. Being afraid of credit cards is stupid. Just be responsible with it and you won't have any problems at all.

Over here it does, they see your ability to pay it off in full each month as proof that you're somebody who is responsible with the credit afforded to you. I'm surprised you guys don't also have sub-prime credit cards

quote:

Originally posted by Ian Over here it does, they see your ability to pay it off in full each month as proof that you're somebody who is responsible with the credit afforded to you. I'm surprised you guys don't also have sub-prime credit cards

I should have specified more clearly. It will build your credit, but not to the same extent as the way I described will (in both America and over there).

Credit Cards exist for financial companies to make money. To do this, you must be paying interest and other fees. To them, it is not ideal for you to be paying it off in full every month. Thus this won't raise your credit to the same degree.

quote:

Originally posted by Arbiter If you're responsible enough to handle it, go for it. I've been using my credit card for about seven years now, and in that time I've paid $0 in interest and $0 in fees while receiving roughly $4,000 cash back. Not much downside to that.

Bingo.

quote:

Originally posted by Ygrene Bingo.

Dingo.

quote:

Originally posted by Halcyon+On+On Dingo.

My Baby!

quote:

Originally posted by r5a 2. go visa, amex is shit - i have both cards

Please explain how AMEX is shit.

quote:

Originally posted by srussell0018 How do you have any type of card when you make no money?

lulz

I just upgraded my Visa last year to one with a lower interest rate based on my credit. I had the same noob card for years that had a 19 something percent interest rate. Now it's only 6.

quote:

Originally posted by Lews I should have specified more clearly. It will build your credit, but not to the same extent as the way I described will (in both America and over there). Credit Cards exist for financial companies to make money. To do this, you must be paying interest and other fees. To them, it is not ideal for you to be paying it off in full every month. Thus this won't raise your credit to the same degree.

False. MERCHANTS are paying most of the fees. Merchants give 3-4% or so on every purchase, depending on the card and other factors. This, as well as the interest people pay, are how the financial institutions make money.

Since 99% of places don't give "cash discounts", you're paying the same amount as people who use credit cards. The financial institutions can give a portion of their profit to purchasers as rewards (1-2% typically). People who pay with cash basically subsidize rewards that people get with credit cards.

quote:

Originally posted by UWM Please explain how AMEX is shit.

their rates to the merchants are ridiculous - hence why not a lot of people carry AMEX and prefer visa. it doesn't cost them an arm-leg to support it. id rather have one card then two, and everybody takes visa/mc. amx is like discover, nobody uses it. (k thats a bit extreme but i dislike amx)

their customer service is non-existent/terrible anything to do with claims & help.

quote:

Originally posted by UWM Please explain how AMEX is shit.

Tons of places over here have stopped accepting Amex altogether. Either that, or they charge like 5% on top of your purchase.

amex free extended warranty ftw.

Get an Amazon card.

Credit cards are just about financial responsibility. if you can't afford something, don't buy it. or, if you can't afford it and you DO buy it, be prepared to pay in the long run.

Look, if you use the system right, you can get big rebates/refunds on credit cards. pay your bills with credit cards that offer points. you have to pay your bills anyway, might as well work towards getting a $25 gift card here or there.

You just have to be smart about everything. do your research, find the good deals, and work the system.

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